A general view of the ATM card holders gathered at the ATM Booth
to get cash in Bangalore, India, on Nov. 8, 2016. In a major decision,
Indian Prime Minister, announced that rupee currency notes with
denomination values of INR 500 (about $7.5) and INR 1000 (about $15)
respectively will be invalid and will be discontinued from midnight .
Citizens would be allowed to exchange their old currency notes through
the banks and post offices till 30 December. This is being considered as
a major step towards curbing black money. Photo by Jagadeesh
NV/European Press Agency

India pulled
all of the country's 500 and 1,000 rupee notes out of circulation in a
bid to crack down on black market and counterfeit currency, sending
worried residents rushing to banks to withdraw cash for the coming days.

Indian Prime Minister Narendra Modi,
in an unscheduled announcement to the country late Tuesday, said
eliminating the legal tender will aid the country in its fight against
corruption and terrorism. India, primarily a cash economy, is using the
move to fight back against militants who are suspected of using phony
high-value rupees to fund operations.

Modi, during his speech, said the currency
"will become just worthless pieces of paper," adding that other forms of
currency will not be affected.

"The magnitude of cash in circulation is
directly linked to the level of corruption. Inflation becomes worse
through the deployment of cash earned in corrupt ways. The poor have to
bear the brunt of this. It has a direct effect on the purchasing power
of the poor and the middle class," he said.

Officials announced banks
would be closed on Wednesday and ATM machines not working in
expectation of a surge of deposits in the coming days. Local residents
rushed to banks to withdraw money.

The currency will be accepted in select places
for the next three days, including government hospitals and gas
stations. Residents have 50 days to deposit old bills into banks or post
office accounts.